This article will be published in the September 2015 issue of WIRED magazine, out 6 August. Be the first to read WIRED's articles in print before they're posted online, and get your hands on loads of additional content by subscribing online

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Shenzen-based startup OnePlus expected to sell 50,000 units of its new smartphone in 2014 -- its first year of production. It ended up selling more than a million. "We realised people making Android phones weren't passionate about the phone itself; they were just interested in distribution," says co-founder Carl Pei, 25 (pictured). With a team handpicked from China's top technology companies including Oppo, Xiaomi and TenCent, Pei's company sells a high-end smartphone at below £200. Its goal for 2015: five million sales. "We had to build out the team very quickly. Our hardware team is now close to 100 people," Pei says.

The OnePlus One runs on an Android-based Cyanogen operating system (the team is currently building its own OS, called Oxygen) and only retails through its website. It now sells to 35 countries across North America and Europe, as well as India, Taiwan, Hong Kong and Indonesia. The startup drummed up demand for the phones using virtual-reality launches and invitation-only sales. "People started selling OnePlus invites on eBay," Pei says. "It was a great way to make the product more special."

A second model with a USB-C charging port, the OnePlus 2, has just been unveiled and will go on sale in August from £250.

Pei intends to keep the company lean, with razor-thin margins and low inventory. "Our margins are so thin that we are basically giving the phone away for free, but we want to monetise eventually," he says. "We will own and control everything from end to end, so we will have a deep integration with users. You just turn on your phone, log in and buy things without entering payment information." We're rooting for the little guy.